Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

Question

Business

Kristen

11 November, 03:37

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

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Answers (1)

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Karina Acevedo · Answer 1

Kushman would report $60,000 for cost of goods manufactured

Explanation:

Cost of Goods Sold is a direct cost of selling an item.

Cost of Goods Sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Making the Cost of goods manufactured as a subject of formula the calculation will be as follows:

Cost of goods manufactured = Cost of Goods Sold+Ending finished goods inventory-Beginning finished goods inventory

Therefore,

Cost of goods manufactured = $50,000+$20,000 - $10,000

= $60,000